Sirama: a loan from the Public Treasury prior to privatization

According to Minister Hery Rajoanarimampianina, a convention has been signed between the Public Treasury and the sugar producing Sirama corp. The money used to repay the workers’ delayed pay checks was, concerning this particular enterprise, merely a loan. The Finance Minister insured that the Sirama has the means to repay this loan:”the renting of the Namakia and Nosy Be sites is yearly granting 3.5 million US dollars.” he explained. “The loan will be repaid by the beginning of 2010”. The State has unblocked something close to 4 billion Ariary for Sirama. Andry Rajoelina made it an argument for his electoral pre campaign. Therefore, criticisms are flowing about this “money distribution” in a poor economic situation. The Finance Minister is trying to downsize the debate:”This money does not come down from heaven, it is public money” he justified. It is also a political decision to the advantage of Andry Rajoelina who, in his own words:”brings solution and light to the concerned populations”. “Some people will get 300 million franks, some others 150 millions or 80 millions”, he added to entertain the audience. The repay of Sirama’s workers’ two years long suspended wages is re-launching the sugar production industry. The Minister for Industry and economy has reiterated in Nosy Be that the call for a private corporation to manage the society has already been launched. According to Fienana Richard, no decision has yet been taken concerning the move to be made, but a couple of options are being considered: either the sell out or the renting contract. “Renting the society will grant us regular income” he said. “We, Madagascans, are very sensitive about property ownership, but the State will get the jackpot all at a time if we decide to sell out”. The repay of delayed wages is also a mean to make Sirama more attractive to potential investors. Some observers, however, are fearing a possible State led misuse of Sirama in order to get cash, in case of lack of money from financial backers. Returns from an eventual sell out of the single sugar industry would be a priceless asset for the State if the transitional government gets isolated by the international community. “The year 2010’s budget plan is a done deal, we have to reach the State’s structure. We cannot move forward without the government’s setting up or without money to share between departments” explained the Finance minister. According to Hery Rajaonarimampianina, his staff’s drafted plan is still likely to be altered